[ad_1]
Bitcoin (CRYPTO: BTC) is an asset that has a fixed supply and deflationary properties, so it makes sense to be long, Bit Digital Inc (NASDAQ:BTBT) CEO Bryan Bullet said Tuesday in an exclusive interview on Benzinga’s trade idea show “Power Hour.”
Why Invest In Bitcoin Mining? Bit Digital is engaged in the Bitcoin mining business. Its mining platform operates with the primary intent of accumulating Bitcoin, which the company may sell from time to time to fund its operating expenses.
The mining business offers great operating leverage, the Bit Digital CEO told Benzinga.
“When you invest in a mining stock, you are basically acquiring a share of the ability to generate Bitcoin at a cost that is potentially a fraction of the value of that Bitcoin.”
Margins in the mining business are often 75% to 85%. Mining stocks create an opportunity for investors to invest in Bitcoin at a much lower cost basis than if they were to buy the asset itself, Bullet said.
Bit Digital has an investing strategy that sets it apart from other Bitcoin miners and allows the company to drive higher returns on invested capital, he said.
What About Regulations? As more countries begin to adopt Bitcoin and other cryptocurrencies as part of their economic systems, it will become harder and harder to regulate crypto out of existence, Bullet said.
Regulations in the crypto industry are warranted as long as they are enacted in a way that allows innovation to continue across the space, he added.
See the full interview here:
BTBT Price Action: Bit Digital has traded as high as $33 and as low as $3.40 over a 52-week period.
The stock closed down 4.13% at $9.97 on Tuesday.
Photo: Eivind Pedersen from Pixabay.
[ad_2]
